Professional Documents
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A. Cooperatives
Under the Philippine Cooperative Code of 2008 (R.A. No. 9520),
cooperatives are classified in two, cooperatives transacting with
members only and cooperatives which transact business with both
members and non-members. The last classification is further classified
into three.
a. Cooperatives transacting business with members only.
Article 60, R.A. No. 9520 provides,
ART. 60. Tax Treatment of Cooperative Duly registered
cooperatives under this Code which do not transact any
business with non-members or the general public shall not be
subject to any taxes and fees imposed under the internal
revenue laws and other tax laws.
b. Cooperatives transacting business with members and nonmembers.
i.
Cooperatives with accumulated reserves and undivided
net savings of NOT more than Ten million pesos
Cooperatives with accumulated reserves and undivided net
savings of not more than Ten million pesos (P10,000,000.00)
shall be exempt from all national, city, provincial, municipal or
barangay taxes of whatever name and nature. Such
cooperatives shall be exempt from customs duties, advance
sales or compensating taxes on their importation of
machineries, equipment and spare parts used by them and
which are not available locally a certified by the department of
trade and industry (DTI). All tax free importations shall not be
sold nor the beneficial ownership thereof be transferred to any
person until after five (5) years, otherwise, the cooperative and
the transferee or assignee shall be solidarily liable to pay twice
the amount of the imposed tax and / or duties.
ii.